Google Shares Soar as Earnings Blow Past Estimates

Google stock surged $38 in after-hours trading after the online behemoth reported third-quarter earnings that trounced expectations and said that 40 million people have already signed onto its new Facebook-like social networking site dubbed Google+.

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"People are flocking into Google+ at an incredible rate and we are just getting started!" the company quotes CEO and co-founder Larry Page saying in its press release announcing quarterly financials.

Google reported net income of $2.7 billion in the quarter, up 26 percent compared with the same quarter last year. Revenue jumped 33 percent to $9.7 billion.

On a per-share, non-GAAP basis, Google posted a profit of $9.72, about a dollar more than Wall Street analysts were expecting.

Google said it experienced 28 percent growth in paid clicks year-over-year and 13 percent growth compared to the second quarter.

Google shares immediately jumped nearly 9 percent after the release of its report then fluctuated into the company's conference call. By the time the event ended, the shares were up 7 percent.

During the regular session, the stock rose 2 percent to $558.99, making Google a $180.5 billion company, about 10 times more valuable than Yahoo.

On the call, executives told analysts that there is still big growth ahead for YouTube because it still claims only a small percentage of the overall video market. Page, when asked about Google TV compared to cable television,  said Google was working toward "better services for end users around media," though he wouldn't say what's specifically in store for the product.